| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to a franchise tax credit for a taxable entity that employs |
|
|
certain former offenders. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Chapter 171, Tax Code, is amended by adding |
|
|
Subchapter N to read as follows: |
|
|
SUBCHAPTER N. TAX CREDIT FOR EMPLOYERS WHO HIRE FORMER OFFENDERS |
|
|
Sec. 171.701. DEFINITION. In this subchapter, "former |
|
|
offender" means a person who was convicted of a state or federal |
|
|
felony offense and incarcerated as a result of that conviction. The |
|
|
term includes a person who was incarcerated as a result of a |
|
|
violation of the conditions of parole or mandatory supervision |
|
|
related to the conviction. |
|
|
Sec. 171.702. ENTITLEMENT TO CREDIT. A taxable entity is |
|
|
entitled to a credit in the amount and under the conditions provided |
|
|
by this subchapter against the tax imposed under this chapter. |
|
|
Sec. 171.703. QUALIFICATION. A taxable entity qualifies |
|
|
for a credit under this subchapter if the taxable entity: |
|
|
(1) employs a former offender within 12 months of the |
|
|
former offender's release from the offender's first term of |
|
|
incarceration for at least 40 hours of work per week; and |
|
|
(2) pays the former offender a wage that, when |
|
|
computed as an hourly wage, meets or exceeds the federal minimum |
|
|
wage established under Section 6, Fair Labor Standards Act of 1938 |
|
|
(29 U.S.C. Section 206). |
|
|
Sec. 171.704. AMOUNT OF CREDIT. A taxable entity may claim |
|
|
a credit on a report in the amount of: |
|
|
(1) $3,000 for each former offender whose first |
|
|
anniversary of employment by the taxable entity occurs during the |
|
|
period covered by the report, if the requirements of Section |
|
|
171.703 are met at all times during the former offender's first year |
|
|
of employment by the taxable entity; |
|
|
(2) $2,000 for each former offender whose second |
|
|
anniversary of employment by the taxable entity occurs during the |
|
|
period covered by the report, if requirements of Section 171.703 |
|
|
are met at all times during the former offender's second year of |
|
|
employment by the taxable entity; and |
|
|
(3) $1,000 for each former offender whose third |
|
|
anniversary of employment by the taxable entity occurs during the |
|
|
period covered by the report, if the requirements of Section |
|
|
171.703 are met at all times during the former offender's third year |
|
|
of employment by the taxable entity. |
|
|
Sec. 171.705. APPLICATION FOR CREDIT. (a) A taxable entity |
|
|
must apply for a credit under this subchapter on or with the report |
|
|
for which the credit is claimed. |
|
|
(b) The comptroller shall prescribe the form and method of |
|
|
applying for a credit under this section. A taxable entity must use |
|
|
the form and method prescribed by the comptroller to apply for the |
|
|
credit. |
|
|
Sec. 171.706. ASSIGNMENT PROHIBITED; EXEMPTION. A taxable |
|
|
entity may not convey, assign, or transfer the credit allowed under |
|
|
this subchapter to another taxable entity unless substantially all |
|
|
of the assets of the taxable entity are conveyed, assigned, or |
|
|
transferred in the same transaction. |
|
|
Sec. 171.707. RULES. The comptroller shall adopt rules |
|
|
necessary to implement this subchapter. |
|
|
SECTION 2. This Act applies only to a report originally due |
|
|
on or after the effective date of this Act. |
|
|
SECTION 3. This Act takes effect January 1, 2024. |